ANALYSIS THE INFLUENCES OF FINANCIAL PERFORMANCE TOWARD STOCK PRICE IN BANKING INDUSTRY

Abstract

The research aimed to empirically examine and analysis the factor of financial performance that affecting the stock price in banking industry during period 2013 to 2017. This research used quantitative research through purposive sampling which was obtained from official websites of each firm and listed on the Indonesia Stock Exchange (IDX). The aimed of the study is analysis Earnings per Share, Net Profit Margin, Return on Assets, and Debt to Equity Ratio how it explained the stock price for banking industry. While this research uses secondary data, the dependent variable is the stock price of the bank. And the independent variable is Earnings per Share, Net Profit Margin, Return on Assets, and Debt to Equity Ratio, the data were analysis using multiple regression analysis to test the significant effect of the independent variable to the dependent variable. F-Test and T-Test were conducted to test the hypotheses with the 5% level significantly. The results shows that net profit margin and debt to equity ratio partially positive significance influence towards stock price. While, earnings per share and return on assets have negative significance influence towards stock price. Simultaneously, those independent variables influence stock price by 49.2%.